Correlation Between GACM Technologies and Indian Overseas
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By analyzing existing cross correlation between GACM Technologies Limited and Indian Overseas Bank, you can compare the effects of market volatilities on GACM Technologies and Indian Overseas and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GACM Technologies with a short position of Indian Overseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Indian Overseas.
Diversification Opportunities for GACM Technologies and Indian Overseas
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GACM and Indian is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Indian Overseas Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indian Overseas Bank and GACM Technologies is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GACM Technologies Limited are associated (or correlated) with Indian Overseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indian Overseas Bank has no effect on the direction of GACM Technologies i.e., GACM Technologies and Indian Overseas go up and down completely randomly.
Pair Corralation between GACM Technologies and Indian Overseas
Assuming the 90 days trading horizon GACM Technologies Limited is expected to generate 0.28 times more return on investment than Indian Overseas. However, GACM Technologies Limited is 3.57 times less risky than Indian Overseas. It trades about -0.03 of its potential returns per unit of risk. Indian Overseas Bank is currently generating about -0.08 per unit of risk. If you would invest 98.00 in GACM Technologies Limited on October 18, 2024 and sell it today you would lose (1.00) from holding GACM Technologies Limited or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
GACM Technologies Limited vs. Indian Overseas Bank
Performance |
| Timeline |
| GACM Technologies |
| Indian Overseas Bank |
GACM Technologies and Indian Overseas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Indian Overseas
The main advantage of trading using opposite GACM Technologies and Indian Overseas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Indian Overseas can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Indian Overseas will offset losses from the drop in Indian Overseas' long position.| GACM Technologies vs. Fertilizers and Chemicals | GACM Technologies vs. JGCHEMICALS LIMITED | GACM Technologies vs. Vishnu Chemicals Limited | GACM Technologies vs. Omkar Speciality Chemicals |
| Indian Overseas vs. Parag Milk Foods | Indian Overseas vs. Sudarshan Chemical Industries | Indian Overseas vs. Indo Rama Synthetics | Indian Overseas vs. Univa Foods Limited |
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